Pine Valley Mining Corporation

Pine Valley Mining Corporation

March 30, 2005 17:21 ET

Pine Valley Mining Seeks Approval for Increased Production at Willow Creek Coal Mine


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PINE VALLEY MINING CORPORATION

TSX VENTURE SYMBOL: PVM
OTC Bulletin Board SYMBOL: PVMCF

MARCH 30, 2005 - 17:21 ET

Pine Valley Mining Seeks Approval for Increased
Production at Willow Creek Coal Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2005) - Pine
Valley Mining Corporation (TSX VENTURE:PVM)(OTCBB:PVMCF) (the "Company"
or "Pine Valley") is pleased to advise that the Company has filed a
permit amendment application with the British Columbia provincial
government regulators requesting an increase to the currently permitted
production level of 0.9 million tonnes per year to 2.2 million tonnes
per year.

The Company has completed commissioning the majority of the equipment
constructed and installed at the Willow Creek Coal Mine for the Phase I
and II mine and plant infrastructure construction. These facilities are
capable of producing the desired 2.2 million tonnes per year. Phase III,
consisting principally of a coal preparation plant that is required for
coal seams planned to be mined later this calendar year, is targeted for
initial completion in the autumn 2005. The Company expects to achieve a
monthly mine production rate of approximately 180,000 tonnes upon the
completion and full commissioning of Phase III.

The mine permit amendment application details an accelerated production
rate using the current Willow Creek Coal Mine reserves and the mine and
plant infrastructure. There will be no increase in the area, known as
the mine "footprint" utilized in the mining process. It should be noted,
however, there is no guarantee that the permit amendment will be
granted, and, if permission is delayed, the Company will be unable to
increase production above current permitted levels until the new permit
amendment is received.

The Company expects to finalize sales contracts for the year ending
March 2006 within the next month and to produce approximately 1.4 to 1.7
million tonnes of coal for the year ending March 31, 2006. The sales
contracts for the coming year will be for approximately 1.2 million
tonnes of PCI coal, the Company's primary product, and a small quantity
of coking coal, which the Company anticipates will be available for sale
in second half of the fiscal year after the completion of the coal
preparation plant.

This news release contains certain "forward looking statements", as
defined in the United States Private Securities Litigation Reform Act of
1995, that involve a number of risks and uncertainties including but not
limited to economic, competitive, governmental and geological factors
affecting the Company's operations, markets, products and prices and
other risk factors. There can be no assurances that such statements will
prove to be accurate and actual results and future events could differ
materially from those anticipated in such statements. Factors that could
cause future results to differ materially from those anticipated in
these forward-looking statements include the Company's dependence on the
steel industry, volatility in coal prices, accidents and other risks
associated with mining operations, the Company's need for and
availability of additional financing, the restrictions imposed under the
Company's existing debt arrangements and its debt service requirements
and the other risk factors discussed in greater detail in the Company's
various filings with the Securities and Exchange Commission and Canadian
securities regulators, including the Company's Form 20-F dated September
30, 2004.

PINE VALLEY MINING CORPORATION

Graham Mackenzie, President and Chief Executive Officer

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Pine Valley Mining Corporation
    Graham Mackenzie
    President & CEO
    (604) 682-4678
    gmackenzie@pinevalleycoal.com
    or
    Pine Valley Mining Corporation
    Mark Fields
    Executive Vice President
    (604) 682-4678
    mfields@pinevalleycoal.com
    www.pinevalleycoal.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.